According to Washington State Legislature WAC 208-660-006, a mortgage broker is defined as “any person who for compensation or gain assists a person in obtaining or applying to obtain a residential mortgage loan or holds himself or herself out as being able to assist a person in obtaining… a residential mortgage loan”. Washington requires all mortgage brokers to be licensed in order to conduct business in the State. A major component of the mortgage broker license application is the Washington Mortgage Broker Bond.
The Washington Mortgage Broker Bond protects the state and any persons who suffer loss by the broker’s violation of any provision pertinent to the business of mortgage brokering. The bond offers financial compensation for valid claims of wrongdoing by the mortgage broker.
The required bond amount for the Washington Mortgage Broker Bond is determined by the annual loan origination volume of the licensee in the State of Washington:
The Washington Mortgage Broker Bond is continuous in nature; therefore, it remains in full force and effect until cancelled. The Surety may cancel the bond at any time with a written notice of cancellation to the Director of Financial Institutions at least 30 days before the effective cancellation date.
All fees are required by the obligee, not the Surety Company.